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How to be financially responsible before investing

Financial planners say there’s an opportunity right now to invest if you’re ready and willing, but how do you do it responsibly? Experts show us how.

SACRAMENTO, Calif. — Financial planners say there’s an opportunity right now to invest if you’re ready and willing but you have to be responsible.

Certified financial planner Kimberly Foss of Empyrion Wealth Management says you need to have three to six months of emergency funds aside before investing.

Some people realized in this pandemic that they didn’t have immediate cash reserves.

Next, check your company’s 401(k) match and make sure it’s maxed out.

Do you have a question about finances or navigating life post-coronavirus? Let the Dollars and Sense team know. Text us at 916-321-3310.

Foss recommends people don't invest all their money in the stock market, instead she encourages people to put away some money into safe assets such as bonds and savings accounts.

“The rule of thumb is 100 minus your age goes into the stock market so if you’re 20 you want 80 percent of your money to go into the stock market,” Foss said. “If you’re 60 you want 40.” 

To get started, she recommends going to an advisor who is certified and has experience going through a financial crisis like in 2008.

There are also apps such as E-Trade, Acorns, Robinhood, and Stash but make sure you know what you’re doing before investing.

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Foss encourages people to not be worried about the day to day of the stock market because this is a long term investment and data shows the market does go up overtime.


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